Key Takeaways

• The UAE has signed Comprehensive Economic Partnership Agreements (CEPAs) with 20 countries, with 6 already implemented.
• These trade deals are projected to boost the UAE’s economy by 2.6% by 2030.
• CEPAs with India, Indonesia, Israel, Turkey, Cambodia, and Georgia are currently operational.
• The remaining 14 agreements are awaiting ratification, involving countries like Jordan, Australia, and South Korea.
• The UAE aims to finalize a total of 26 CEPAs to diversify its economy and increase investment.
• The UAE’s non-oil foreign trade hit a record Dh3 trillion in 2024, up 14.6% year-on-year.
• Bilateral trade with partner countries surged significantly, such as a $50.5 billion trade with India post-CEPA implementation.
• Sheikh Mohammed bin Rashid highlighted the substantial increase in non-oil trade, targeting Dh4 trillion annually by 2031.
• The agreements have potential goals like boosting UAE-Israel trade to $10 billion and UAE-Indonesia trade to $10 billion by respective deadlines.
• Trade with Georgia is expected to triple, contributing significantly to both countries’ GDPs by 2031.

The United Arab Emirates (UAE) is making significant strides in redefining its economic landscape through strategic international collaborations. At the heart of this transformation are the Comprehensive Economic Partnership Agreements (CEPAs) the country has diligently pursued with various nations. These agreements are not merely trade pacts but represent a visionary approach to economic diversification and growth.

An Overview of CEPAs

The UAE has signed CEPAs with 20 nations, with 6 already in operation, signifying a substantial leap towards international economic integration. The operational CEPAs with countries such as India, Indonesia, Israel, Turkey, Cambodia, and Georgia are instrumental in driving economic activities across diverse sectors.

Key Milestones:

• Boost in Economic Growth: These agreements are projected to enhance the UAE’s economy by an impressive 2.6% by the year 2030.
• Record-Setting Trade: The UAE’s non-oil foreign trade reached a historic Dh3 trillion in 2024, marking a 14.6% increase from the previous year.

Operational and Pending CEPAs

Operational CEPAs:

1. India: This partnership has resulted in a $50.5 billion trade post-implementation, showcasing the tangible benefits of the agreement.
2. Indonesia: With a projected boost to $10 billion in trade, this CEPA exemplifies the proactive economic strategy of the UAE.
3. Israel: The UAE-Israel CEPA aims to escalate trade to $10 billion, underscoring a new epoch of Middle Eastern economic cooperation.
4. Turkey, Cambodia, and Georgia: These agreements further signify the UAE’s ambition to form robust economic linkages across diverse geographical regions.

Pending CEPAs:

The journey towards a total of 26 CEPAs continues, with 14 agreements awaiting ratification. Countries like Jordan, Australia, and South Korea are on this list, providing a glimpse into the UAE’s strategic focus on building a well-rounded global trade network.

Economic Impact and Future Outlook

The UAE’s forward-thinking economic policies, as illustrated by these CEPAs, are aligned with the broader objective of economic diversification. By reducing dependence on oil revenues, the nation is laying the groundwork for a sustainable economic future.

Highlights of Expected Economic Impact:

• GDP Growth: The trade with Georgia alone is expected to triple non-oil trade value and substantially boost GDP for both countries.
• Non-Oil Trade Target: As highlighted by Sheikh Mohammed bin Rashid, the UAE aims to achieve a Dh4 trillion non-oil trade value by 2031, a target that seems attainable with the current momentum.

Strategic Vision: Towards Economic Resilience

The CEPAs are more than trade agreements—they represent the UAE’s strategic vision to cement its position as a global trade hub. By facilitating tariff reductions, easing trade bottlenecks, and fostering cross-border investments, these partnerships are setting a precedent for economic resilience.

The Road Ahead:

• Investment Opportunities: With increasing foreign trade, there are ample opportunities for multinational investments, particularly in burgeoning sectors like technology, renewable energy, and sustainable development.
• Economic Diversification: The focus remains steadfast on reducing oil dependency, thereby paving the way for a balanced and diversified economy.

As the UAE continues to fortify its economic partnerships, the role of CEPAs will be pivotal in shaping the future economic narrative of the nation. These agreements are a testament to the UAE’s commitment to global economic leadership and strategic foresight.